Ranpak, Mannington Mills break; Skillsoft, Mister Car tweak deals; Progrexion ups deadline

By Sara Rosenberg

New York, Sept. 22 – Ranpak Holdings Inc.’s credit facility made its way into the secondary market on Monday with the first- and second-lien term loans quoted above their original issue discounts, and Mannington Mills freed up too.

Switching to the primary, Skillsoft Ltd. trimmed the size of its incremental first-lien term loan, increased pricing on all of its term loan debt, widened original issue discounts on the incremental tranches and sweetened the first-lien call protection.

In addition, Mister Car Wash tightened the spread and offer price on its term loan B, Progrexion accelerated the commitment deadline on its first-lien term loan, and Metaldyne LLC and Graton Resort & Casino surfaced with new deal plans.

Ranpak hits secondary

Ranpak Holdings’ credit facility broke for trading on Monday, with the $233,412,000 seven-year first-lien covenant-light term loan quoted at par bid, par ½ offered and the $135 million eight-year second-lien covenant-light term loan quoted at par bid, 101 offered, according to a trader.

Pricing on the U.S. first-lien term loan is Libor plus 375 basis points with a 1% Libor floor and it was sold at an original issue discount of 99¾. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 725 bps with a 1% Libor floor and was sold at a discount of 99½. This debt has call protection of 102 in year one and 101 in year two.

The company’s $600 million-equivalent credit facility includes a $30 million five-year revolver and a €157 million seven-year first-lien covenant-light term loan priced at Euribor plus 400 bps with a 1% floor and sold at a discount of 99¾.

Like the U.S. first-lien term loan, the euro first-lien term loan has 101 soft call protection for six months.

Ranpak being acquired

Proceeds from Ranpak’s credit facility will be used to help fund its buyout by Rhone Capital LLC from Odyssey Investment Partners LLC, which is expected to close in the third quarter, subject to customary conditions, including regulatory approvals.

Credit Suisse Securities (USA) LLC and Macquarie Capital are leading the deal.

During syndication, the total first-lien term loan amount was increased to $435 million equivalent from $400 million equivalent, with the euro piece upsized from roughly €130 million, pricing on the U.S. first-lien term loan was cut from Libor plus 400 bps, pricing on the euro first-lien term loan was lowered from Euribor plus 425 bps and the discount on all of the first-lien term loan debt was tightened from 99.

Also, the second-lien term loan was downsized from $170 million, the spread was lowered from Libor plus 750 bps and the discount was modified from 99.

Ranpak is a Concord Township, Ohio-based manufacturer of paper-based systems for protective packaging needs.

Mannington frees up

Mannington Mills’ $275 million seven-year covenant-light term loan B (B1/BB-) began trading too, with levels see at 99½ bid, par offered on the open and then it moved up to 99¾ bid, par ¼ offered, a trader remarked.

Pricing on the loan is Libor plus 375 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, the spread on the term loan was increased from Libor plus 350 bps, the call protection as extended from six months and the MFN sunset provision was removed.

RBC Capital Markets LLC and Societe Generale are leading the deal that will refinance existing debt.

Net leverage is 2.9 times.

Mannington Mills is a Salem, N.J.-based manufacturer of residential and commercial sheet vinyl, luxury vinyl, laminate, hardwood and porcelain tile floors, as well as commercial carpet and rubber.

Skillsoft modifies deal

Over in the primary, Skillsoft downsized its incremental first-lien term loan due April 28, 2021 to $465 million from $515 million, raised pricing on the debt as well as on the repricing of its existing $900 million first-lien term loan due April 28, 2021 to Libor plus 475 bps from talk of Libor plus 425 bps to 450 bps, moved the original issue discount on the incremental loan to 98 from talk of 99 to 99½ and revised the call protection on all of the first-lien debt to a according to a 101 soft call for one year from a 101 soft call through April 28, 2015, according to a market source.

Additionally, pricing on the $185 million incremental second-lien term loan due April 28, 2022 and repricing of the company’s existing $485 million second-lien term loan due April 28, 2022 was lifted to Libor plus 825 bps from talk of Libor plus 775 bps to 800 bps, and the discount on the incremental second-lien term loan widened to 97½ from talk of 98½ to 99the source said.

As before, all of the term loans have a 1% Libor floor, the existing term loans are offered at par, and the second-lien debt still has hard call protection of 102 through April 28, 2015 and 101 through April 28, 2016.

Skillsoft tweaks accordion

Along with the structural and pricing changes, Skillsoft modified the incremental allowance on the first-lien loan to $125 million shared plus an unlimited amount up to 4.75 times first-lien net leverage from $200 million shared plus an unlimited amount up to 5 times first-lien net leverage, and the accordion on the second-lien to $125 million from $200 million shared plus an unlimited amount up to 7.5 times secured net leverage, the source continued.

All first-lien term loans will be fungible and all second-lien term loans will be fungible.

This transaction is repricing the existing first-lien term loan from Libor plus 350 bps with a 1% Libor floor and the existing second-lien term loan from Libor plus 675 bps with a 1% Libor floor.

Recommitments were due by 5 p.m. ET on Monday.

Skilsoft lead banks

Barclays, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading Skillsoft’s covenant-light term loans, with Barclays the left lead on the first-lien loan and Morgan Stanley the left lead on the second-lien loan.

Proceeds from the incremental term loans will be used to fund the acquisition of SumTotal Systems LLC from Vista Equity Partners, and, as a result of the downsizing of the incremental first-lien loan, the company’s existing revolver borrowings will remain outstanding, the source added.

Closing is subject to various conditions, including the expiration of the applicable waiting period under the Hart-Scott-Rodino Act.

Skillsoft is a Dublin-based provider of cloud-based learning services. SumTotal is a Gainesville, Fla.-based provider of integrated HR services.

Mister Car Wash modified

Mister Car Wash cut pricing on its $180 million seven-year covenant-light term loan B to Libor plus 400 bps from Libor plus 450 bps and changed the original issue discount to 99¼ from 99, according to a market source.

As before, the term loan B has a 1% Libor floor and 101 soft call protection for six months.

The company’s $210 million credit facility (Ba3/B-) also includes a $30 million revolver.

Allocations are targeted to go out later this week, the source added.

Jefferies Finance LLC, Nomura Securities Co., Ltd. and BMO Capital Markets Corp. are leading the deal that will be used with $87.5 million of privately placed unsecured notes and about $270 million of equity to back the recently completed buyout of the Tucson, Ariz.-based car wash company by Leonard Green & Partners LP from Oncap.

Leverage through the bank debt is around 3.9 times.

Progrexion revises deadline

Progrexion moved up the commitment deadline on its $280 million six-year first-lien term loan (Ba3/B+) to 5 p.m. ET on Tuesday from Wednesday, a market source said.

Talk on the first-lien term loan is Libor plus 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

The company is also getting a $160 million seven-year second-lien term loan (Caa1/CCC+) that has been pre-placed.

Jefferies Finance LLC and Morgan Stanley Senior Funding Inc. are leading the $440 million of term loans, which will be used to refinance the company’s $430 unitranche financing provided by Prospect Capital earlier in the year for a 6 times leveraged dividend recapitalization.

Leverage is 3.2 times through the first-lien and 5 times through the second-lien.

Progrexion is a provider of credit repair services.

Metaldyne on deck

Metaldyne scheduled a conference call for Wednesday to launch a $1.5 billion credit facility, according to a market source.

The facility consists of a $250 million five-year revolver and a $1.25 billion seven-year covenant-light term loan B, the source said.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Keybanc Capital Markets, Morgan Stanley Senior Funding Inc., Nomura and RBC Capital Markets are leading the deal that will be used to refinance existing debt.

Metaldyne is a Plymouth, Mich.-based manufacturer of highly engineered metal-based components for engine, transmission, and driveline applications in the automotive and light truck markets.

Graton readies deal

Graton Resort & Casino set a bank meeting for Wednesday to launch a $950 million credit facility, according to a market source.

The facility consists of a $100 million five-year revolver, a $350 million five-year term loan A, and a $500 million six-year term loan B with soft call protection of 102 in year one and 101 in year two, the source said.

Bank of America Merrill Lynch, Wells Fargo Securities LLC and U.S. Bank are leading the deal that will be used to refinance existing debt.

Graton Resort is a full-amenity gaming resort in Sonoma County, Calif.

Zebra well met

In other news, Zebra Technologies Corp.’s $2 billion seven-year term loan B was heard to be about half subscribed by early Monday as the deal has been seeing a positive reaction from investors since launching last Thursday, a source remarked.

The term loan B is talked at Libor plus 350 bps to 375 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $2.25 billion senior secured deal (Ba2/BB+) also includes a $250 million revolver.

Morgan Stanley Senior Funding Inc. and J.P. Morgan Securities LLC are the joint bookrunners on the credit facility and joint lead arrangers with Deutsche Bank Securities Inc.

Commitments are due on Sept. 30.

Proceeds will be used with an expected $1.25 billion of notes and cash on hand to fund the $3.45 billion acquisition of Motorola Solutions Inc.’s enterprise business, which is expected to close by year-end.

Zebra is a Lincolnshire, Ill.-based provider of marking and printing technologies.

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